Crains New York - April 15, 2013 - (Page 16)

REPORT SMALL BUSINESS Squeezed by regs at every level Continued from Page 1 economic backbone, entrepreneurs are reeling from a slew of new rules and regulations enacted at every level of government. Obamacare and paid sick leave are both slated to go into effect in 2014. Last month, state legislators increased New York’s minimum wage. Additionally, the City Council enacted the nation’s broadest statute giving prospective employees the right to sue for not being hired. And last week, the council held a hearing on a bill that would bar employers from using credit checks in hiring.Together,the new measures have heightened anxiety for employers already dealing with the high cost and bureaucratic hurdles of doing business in New York City. ‘Insensitive’ officials “Individually, each is enough to make us question doing business, but all at the same time?” said Michael Sinensky, who owns six bars in Manhattan, including the popular Village Pourhouse. “It blows my mind how insensitive the elected officials can be to not realize this.” While the smallest firms receive exemptions in the sick-leave bill and tax credits to pay for Obamacare, employers of a certain size, especially retailers and restaurants with more than 50 employees, are too big to benefit and too small to easily absorb the NUMBER OF costs, owners DAYS of paid sick say. leave due next “We didn’t year to employees at businesses make $500 milwith staffs of 20 lion this year,” or more said Jeremy Merrin, owner of Havana CenANNUAL tral restaurants. COST PER “It’s a different EMPLOYEE kind of a busiof five paid sick ness. I don’t days at the Wink fashion think anyone in boutique government is taking that into account.” The vetoTHE COST OF OBAMACARE proof sick-days to Wink owner proposal applies Stephen Werther to businesses with at least 20 employees starting next year and expands to cover firms with at least 15 employees in 2015. Each employee would get up to five paid days off. Supporters of the measure say al- 5 $1K $140K lowing sick workers to stay home will be good for business. “When someone’s sick and gives it to everyone else, it takes three or four weeks for it to pass,” said Taj Lawler, general manager at the Murray Hill location of Hummus Kitchen. Supporters also believe that restaurant workers will not abuse the policy because a paid day off means they lose their bread and butter: tips. The benefits may be hard to calculate; the costs, however, are not. Wink’s Mr. Werther has about 80 employees at three stores in New York City. Five days a year comes out to about $1,000 per employee. Mr. Sinensky will pay $100,000 more in wages to give his approximately 250 employees paid days off. While his revenue is growing—to $20 million in 2012, with an expected increase of 50% in 2013—New York profits are not. Because of rent increases, fines and other fees, Mr. Sinensky saw his Manhattan profit decline 67% last year, he said. “We’re not looking to grow in New York anymore,” said Mr. Sinensky,who is looking across the Hudson to New Jersey, where he’s opened or invested in five businesses in the past two years, creating 500 jobs. Mr. Merrin, meanwhile, has opened his two newest locations in Westchester and on Long Island and said he is not interested in adding to his two original New York City outposts. The impact of the employee discrimination bill passed over Mayor Michael Bloomberg’s veto in March is also worrisome, business owners say. The law says in part that a job applicant’s unemployed status cannot be taken into account. In his veto explanation, the mayor said the provision is rife with potential for nuisance lawsuits. To protect himself, Mr. Werther said he will start recording interviews. Just posturing Carl Calo, who owns Ace Banner Flag & Graphics, said long gaps in employment can sometimes be a red flag, and not being able to ask about the gap puts the applicant at a disadvantage. “A lot of this is just political posturing,” Mr. Calo said.“[Politicians] make people think they’re doing something for them but in reality they’re not.” The state minimum wage that will ultimately increase to $9 an hour will be felt even by businesses with few low-wage workers, according to Mr. Merrin. “I don’t have any problems with the minimum wage, but it raises the tide for everything,” Mr. Merrin said. “Whatever the increase is in the minimum wage, you’ve got to kind of figure that your salaries are going to go up.” Under the Affordable Care Act, businesses with 50 or more full-time employees will be required to either provide coverage or pay a tax. Mr. Lawler, the general manager at Hummus Kitchen who supports paid sick days, said the cost “could really bankrupt a restaurant.” Owners will do what it takes to survive, and that could mean cutting hours. “No one will be full time,” he said. “That’s what restaurants will do.” Mr. Werther provides coverage for his full-time employees, but does not consider 30 hours a week to be full time, which is the definition under Obamacare. The law will cost him about $140,000 and could mean less coverage for each employee. “I consider offering health care to my full-time employees one of the most important achievements as an employer,” Mr. Werther said. Now what was supposed to help his employees is likely to cost them. “This new health care law is going to force me to pass more of the expense of health care coverage to my employees,” he said. 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SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Any lawful activity. NOTICE OF FORMATION OF HARLEM CORAL LLC. Arts of Org filed with Secy of State of NY (SSNY) on 3/19/13. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 210 W 146 ST APT 6G NY NY 10039. Purpose: any lawful act. NOTICE OF FORMATION OF MOW & AYW LLC Arts of Org filed with Secy of State of NY (SSNY) on 4/2/13. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 35 E. 85TH STREET, APT 11E, NY, NY 10028. Purpose: any lawful act. Notice of Qual. of 245 West 25th Street Building Owner LLC, Auth. filed Sec’y of State (SSNY) 12/18/12. Office loc.: NY County. LLC org. in DE 12/10/12. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to NRAI, 111 Eighth Ave., NY, NY 10011, the Reg. Agt. upon whom proc. may be served. DE off. addr.: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. 16 | Crain’s New York Business | April 15, 2013 Notice of Qualification of BlueMeridian Capital, LLC. App. for Auth. filed Secy. of State of NY (SSNY) on 3/5/13. Off. loc.: NY County. LLC formed in Delaware (DE) on 1/17/13. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 280 Park Avenue, 5th Fl., NY, NY 10017. DE address of LLC: c/o Corporation Service Company, 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful act or activity. Notice of Formation of Aredlo Realty Company, LLC, Art. of Org. filed Sec’y of State (SSNY) 12/31/12. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail copy of process to Cheryl Young Carswell c/o Donald Hamburg, Golenbock Eiseman Assor Bell Peskoe, 437 Madison Ave., NY, NY 10022. Purpose: any lawful activities. Notice of Qualification of BH INVESTMENTS FUND, L.L.C. Authority filed with Secy. of State of NY (SSNY) on 02/21/13. Office location: NY County. LLC formed in Delaware (DE) on 01/11/13. Princ. office of LLC: 655 Third Ave., 11th Fl., NY, NY 10017. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with Secy. of State, State of DE, Dept. of State, Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity. Barney Investments, L.P. filed an App. for Authority with the Department of State of NY on 3/21/2013. 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SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to principal business address: 1133 Broadway, Ste 1321, NY, NY 10010. Purpose: any lawful act. Notice of Qual. of Suvretta Partners, LP, Auth. filed Sec’y of State (SSNY) 8/1/12. Office loc.: NY County. LP org. in DE 10/19/11. SSNY desig. as agent of LP upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Aaron Cowen, 950 Third Ave., 24th Fl., NY, NY 10022. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of LP on file: SSDE, Townsend Bldg., Dover, DE 19901. Name/addr. of each gen. ptr. avail. at SSNY. Purp.: any lawful activities. Notice of Qualification of Skill Capital Associates LLC. Authority filed with NY Dept. of State on 3/29/13. Office location: NY County. Princ. bus. addr.: 733 3rd Ave., 15th Fl., NY, NY 10017. LLC formed in DE on 3/18/13. NY Sec. of State designated agent of LLC upon whom process against it may be served and shall mail process to: c/o CT Corporation System, 111 8th Ave., NY, NY 10011, regd. agent upon whom process may be served. DE addr. of LLC: Corporation Trust Co., 1209 Orange St., Wilmington, DE 19801. Cert. of Form. filed with DE Sec. of State, 401 Federal St., Dover, DE 19901. Purpose: all lawful purposes. Notice of Qual. of 1515 Broadway Owner LLC, Auth. filed Sec’y of State (SSNY) 2/1/13. Office loc.: NY County. LLC org. in DE 1/31/13. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to NRAI, 111 Eighth Ave., NY, NY 10011, the Reg. Agt. upon whom proc. may be served. DE off. addr.: 160 Greentree Dr., Ste. 101, Dover, DE 19904. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. Notice of Qual. of Pura Vida Funds Group GP, LLC, Auth. filed Sec’y of State (SSNY) 8/29/12. Office loc.: NY County. LLC org. in DE 7/27/12. SSNY desig. as agent of LLC upon whom process against it may be served. SSNY shall mail copy of proc. to Att: Efrem Kamen, 1350 Ave of the Americas, 28th Fl., NY, NY 10019. DE off. addr.: CSC, 2711 Centerville Rd., Wilmington, DE 19808. Cert. of Form. on file: SSDE, Townsend Bldg., Dover, DE 19901. Purp.: any lawful activities. http://www.CrainsNewYork.com/podcasts http://www.CRAINSNEWYORK.COM

Table of Contents for the Digital Edition of Crains New York - April 15, 2013

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
CORPORATE LADDER
OPINION
STEVE HINDY
GREG DAVID
REAL ESTATE DEALS
REPORT: SMALL BUSINESS
THE LISTS
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - April 15, 2013